Welcome to my other blog today “How to Build a Purpose-Driven Business: Mike Salguero’s Journey with ButcherBox”. This article is part of the series “How to Work on Big Ideas That Impact Millions,” where we explore the journeys of entrepreneurs who have grown successful businesses with a focus on making a meaningful impact.
Mike Salguero’s path as an entrepreneur took a pivotal turn when his previous company, CustomMade, failed to deliver the growth expected after raising nearly $30 million in venture capital. The marketplace, where artisans sold custom products, struggled to scale after six years of operation. With the realization that this venture wouldn’t define his career, Mike handed over the CEO role to his co-founder, determined to create something new—but on his own terms.
Disqualifying Business Ideas: Choosing a Different Path
Mike’s experience taught him valuable lessons about entrepreneurship. He began his next venture by focusing on what kind of lifestyle he wanted, rather than focusing on “investable” ideas that appealed to venture capitalists. No longer interested in raising large sums of money, he wanted a business that aligned with his values and provided financial freedom without the constraints of a board or investors.
His goal was modest at first: build a subscription business generating $20,000 a month. He started with three different ideas and set a weekly challenge to find reasons to disqualify each one.
His first idea was an outdoor advertising business, but he quickly realized the need for substantial upfront investment to acquire real estate, disqualifying it within a few weeks. The second idea—a financial instrument startup—required navigating regulatory hurdles and significant venture capital, contradicting his decision to avoid external funding. This left him searching for a third idea that could work without heavy financial backing.
Finding a Business with a Mission: The Birth of ButcherBox
In 2015, Mike’s inspiration for ButcherBox came from a personal need. His wife had been diagnosed with a health condition requiring a diet of grass-fed beef, but sourcing high-quality meat was a challenge. After an awkward experience purchasing grass-fed beef from a local farmer who handed it over in a trash bag, Mike saw an opportunity for a better solution: a subscription box delivering grass-fed beef to customers’ doors.
The biggest challenge for this business was figuring out how to deliver frozen meat. However, Mike decided to seek help from someone with expertise in the field rather
and gave him control over the company’s direction without the pressures of answering to investors or a board. He aimed for a modest financial goal: generating $20,000 per month through a subscription-based business. To find the right idea, Mike started with three potential business concepts and set a goal to kill one idea each week by identifying fatal flaws.
The first idea was an outdoor advertising business, but it quickly fell apart. He realized success would require buying an existing advertising company, which was not feasible. His second idea, a new type of financial instrument, also required venture capital funding due to the legal and regulatory hurdles. Since he was committed to bootstrapping his business, that idea was scrapped too.
Finding a Mission-Driven Business
In 2015, subscription boxes were gaining popularity, with businesses offering everything from makeup to meal kits. Mike had an idea brewing for a monthly subscription box for grass-fed beef. His wife’s health issues required access to healthy, grass-fed meat, but finding it was difficult. He recalled a moment when he had to buy pounds of beef from a local farmer, who packed it in a trash bag—a clear sign there had to be a better solution.
The challenge of delivering frozen meat seemed daunting, but Mike believed it was solvable. Rather than trying to figure out logistics on his own, he took a “who not what” approach and reached out to the former head of operations at Omaha Steaks. Surprisingly, the retired executive agreed to help in exchange for equity in the company, which proved to be a smart move when ButcherBox bought back that equity for $4.8 million a few years later. This connection helped Mike establish the necessary logistics for shipping frozen meat, setting the stage for ButcherBox’s launch.
Launching ButcherBox with a Bang
With the operations in place, Mike turned his attention to validating market demand. He decided to launch a Kickstarter campaign, setting a modest goal of $25,000. Mike knew that to get attention on Kickstarter, he needed to appear in one of their featured categories, such as “projects we love.” To increase visibility, his team prepared an email list of supporters ready to place pre-orders the moment the campaign went live.
Within 24 hours, ButcherBox had doubled its goal, raising $50,000. By the end of the 30-day campaign, they had collected $210,000 in orders. More importantly, 40% of their Kickstarter backers became monthly subscribers, giving them a base of loyal customers right out of the gate. This early success confirmed that there was strong demand for high-quality, ethically sourced meat delivered directly to customers’ doors.
The Benefits of a Purpose-Driven Startup
Timing played a significant role in ButcherBox’s success. By the time they launched, subscription boxes were a well-accepted way to shop online, and there was growing awareness about the poor quality of processed meat and the unethical practices in the meat industry. Just days before ButcherBox’s Kickstarter launch, Consumer Reports published an article advocating for grass-fed beef, boosting consumer interest.
Another advantage of running a mission-driven business was its appeal to top talent. ButcherBox wasn’t just another tech startup; it had a purpose—changing the way people source their meat. This made recruitment easier, as many people wanted to contribute to something meaningful.
Over the years, ButcherBox scaled rapidly. Initially, they capitalized on organic sales from influencers in the healthy and sustainable food space. Sponsoring these influencers brought in tens of millions of dollars in sales. Later, they invested in Facebook video ads when the platform was still affordable. These efforts helped ButcherBox grow to 415,000 members, delivering high-quality meat to 1.5 million households over the next eight years.
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Challenges and Growth
Like any subscription-based company, ButcherBox faced customer churn. With 415,000 subscribers, even a 4% churn rate meant losing 16,000 customers monthly. However, Mike’s commitment to the business and its mission continued to deepen. What started as a modest goal of $20,000 per month evolved into a desire to build a generational company that could make a lasting impact on the meat industry.
Today, ButcherBox offers not just grass-fed beef but also free-range organic chicken, humanely raised pork, wild-caught seafood, and even healthy pet food. Reflecting on his entrepreneurial journey, Mike emphasized how important it was to build a business he truly believed in. Financial success is crucial, but finding a mission that you’re passionate about, one that you could dedicate your life to, is rare and priceless.
Mike Salguero’s story demonstrates that with purpose, perseverance, and smart decision-making, you can create a business that makes an impact while staying true to your values.
